TaxTMI 
TaxTMI 
2019 (7) TMI 1736
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....e same for running an industry. 1.2 The applicant has stated that the ITC on works contract service or goods or services or both received for construction of immovable property (other than plant and machinery) is blocked by clause (c) and (d) of Section 17 (5) of CGST Act, 2017; that they have not availed any ITC on the same. 1.3 Apart from the construction of building, they have ordered for the following to be installed at the said building: i. Supply and installation of Sewage Treatment Plant 20 KLD falling under HSN 842121; order given to M/s Krishna Engineering, Alwar; ii. Supply and installation of Fire-fighting system; order given to M/s Cross Fire India, Gurgaon; iii. Supply of Cable for transmission ....
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...., supply and installation of Fire-fighting system, supply of Cable for transmission of electricity, supply of other material for laying of Cable and electrical installations and Laying of Cable and electrical installations for transmission of electricity is admissible. To ascertain the admissibility of ITC it is pertinent to have a look at the relevant Section of the GST Act, 2017. 4.2 Section 17 (5) of the GST Act dealing with apportionment of credit and blocked credits reads as under: (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (b) the following supply of goods or services or bot....
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...., improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract; The meaning of the works contract as cited above clarifies that a contract for installation and fitting out of any immovable property wherein transfer of property is involved, is works contract. In the present case the applicant has ordered the following:- i. Supply and installation of Sewage Treatment Plant to M/s Krishna Engineering, Alwar. ii Supply and installation of Fire-fighting system to M/s Cross Fire India, Gurgaon. iii. Supply of Cable for transmission of electri....
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....property. It means the applicant has constructed a building for the purpose of leasing or renting out the same for running an industry and the goods in question have been added to the building already constructed. Therefore, the Input tax credit is not allowed as per Section 17(5)(d) of the CGST Act, 2017 on all the items in question. 4.6 The explanation to Section 17(5) (d) of the GST Act reads as under:- Explanation:- For the purposes of this Chapter and Chapter VI, the expression "plant and machinery" means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes-....
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....de land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth". Whereas, Section 3 (36) defines movable property as "property of every description, except immovable property". So as per this definition, any property which does not qualify to be immovable property is a movable property. 4.9 As per Transfer of Property Act, immovable property does not include standing timber, growing crops or grass. It further says that "attached to the earth" means: (a) rooted in the earth, as in the case of trees and shrubs; (b) imbedded in the earth, as in the case of walls or buildings; or (c) attached to what is so imbedded for the permanent beneficial enj....
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....that these goods also have been installed in the building for transmission of power from outside sources upto the premises. Thus, these goods are also for permanent beneficial enjoyment of the building. Therefore, Input tax credit is not allowed as per Section 17(5)(d) of the CGST Act. 4.11 The applicant has contended that the service of electrical installations and laying of Cable have not been used for construction of any immovable property. However, it is clear that these services also have been used in the building for transmission of electricity in the premises. Thus, these services are also for permanent beneficial enjoyment of the building. Therefore, Input tax credit is not allowed as per Section 17(5)(d) of the CGST Act. 4.12....